President AKD...

He explained that the tariff was based on the US formula of applying duties equal to half the bilateral trade deficit, in this case, 88%. “This was not a failure of our Government,” he said, “but a result of the mechanism the US uses in applying such tariffs.”

- 

The President said that after difficult negotiations, the Government succeeded in reducing the tariff to 20%. “We achieved a significant outcome through a competent negotiating team and continuous dialogue. There was no media show — only serious work,” he said. He confirmed that discussions with the US are ongoing and that no final agreement has been signed.

President Disanayake also said Sri Lanka recorded its highest-ever export earnings in a decade during the first six months of 2025 and the export market has been diversified. “Of our total exports, 25% go to the US and 23% to the EU. Therefore, any tariffs imposed by these countries have a significant impact on Sri Lanka. This is why the Government has planned to further diversify exports. We do not intend to rely solely on two or three powerful countries or a few export markets in the future. Comparing June 2024 with June this year, exports to the African market have grown by 57%. Looking at the Asian market, export activity has expanded by 26% compared to the previous year.”

He highlighted diversification efforts. “We cannot depend on two or three powerful markets. We are planning for broader export resilience.”

Tourism revenue has increased by 10% over the previous year, and foreign direct investment (FDI in the first six months reached $ 507 million, double the $ 252 million recorded during the same period last year.